Contracts
Novation in contract law means:
AAdding a new party or obligation that substitutes and discharges the original✓ Correct
BCanceling a contract by mutual agreement
CTransferring contract rights to a third party
DExtending the closing date by 30 days
Explanation
Novation replaces an existing party or obligation with a new one; all parties must consent, and the original obligation is discharged.
Related New Jersey Contracts Questions
- In NJ, a real estate contract in which the seller must find acceptable replacement housing before being obligated to close is called a:
- Time is of the essence clauses in NJ real estate contracts mean:
- Which of the following is an essential element of a valid real estate contract in New Jersey?
- The NJ attorney review period begins:
- A NJ buyer's offer is accompanied by an earnest money deposit check payable to the listing brokerage. Before the offer is accepted, what should happen to the check?
- In NJ, the standard residential real estate contract used by most attorneys is based on the form prepared by:
- Under New Jersey contract law, the attorney review period for a residential real estate contract is:
- Mutual mistake in a NJ contract occurs when:
Practice More New Jersey Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Jersey Quiz →